Inflation Jumps in January, Stoking Fed Fears and Sparking Stock Selloff
• Inflation rose more than expected in January, sparking a stock market sell-off as investors worried about more Fed rate hikes • The hot inflation reading dashes hopes of imminent Fed interest rate cuts that had fueled the recent stock rally • While one month of data shouldn't be overreacted to, if inflation persists it could lead to further market declines • Some companies like Uber and Arm Holdings have posted strong earnings recently, helping the market rebound • Bank of America analysts expect "continued acceleration" of earnings in the first half of 2023, saying forecasts may be too conservative